Bonds OKd for $70M in capital projects

Associated Press

Updated: May 24, 2012 1:07 PM

SANTA FE, N.M. (AP) — The state Board of Finance says New Mexico is getting exceptionally low-cost financing for $70 million in capital improvement projects across the state.

The board has accepted bids from Morgan Stanley that provide for an interest cost of 1.47 percent on state bonds backed by revenues from severance taxes on oil and natural gas production.

State officials said the rate was the lowest in memory and there were 12 competitive bids submitted by potential bond underwriters.

The latest bond issuance will pay for projects approved during a 30-day legislative session earlier this year.

Gov. Susana Martinez said Wednesday the low interest rate on the 10-year severance tax bonds will provide savings to taxpayers on the costs of financing capital improvements.
 

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